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Sportsperson's Relief

  1. Overview
  2. About the relief
  3. Interaction with pension products
  4. How to claim the relief

About the relief

Criteria for relief

You may qualify for this relief if you are a retired:

  • athlete
  • badminton player
  • boxer
  • cricketer
  • cyclist
  • footballer
  • golfer
  • jockey
  • motor racing driver
  • rugby player
  • squash player
  • swimmer
  • tennis player.

You must have permanently finished or retired from that profession. You may continue to participate in the sport on an amateur or unpaid basis.

At the time of retirement, you must be resident in one of the following locations:

  • Ireland
  • a European Union (EU) state
  • a European Economic Area (EEA) state
  • a European Free Trade Association (EFTA) state.

Calculating the relief

You may claim a deduction of 40% of certain income arising in any 10 of the following years:

  • your year of retirement
  • or
  • the preceding 14 years of assessment.

Qualifying income for relief

The tax relief applies to your earnings directly from participation in the sport only, such as wages or prize money. Any income you earned from items such as personal appearances, sponsorship or interviews does not qualify for tax relief.

Limits on relief

You may not use the relief to create a tax loss in any year of assessment. If you return to professional sports after you claim the relief, the relief will be withdrawn. Any relief paid by Revenue will be due back to us as this relief is only available when you fully retire.

Relief is available in respect of Income Tax only. No deduction is available in respect of Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

  • Example

    Paul is a professional rugby player who retired from rugby in 2023. He wishes to claim Sportsperson's Relief. To do so, he reviewed his income from playing rugby for the 15 years prior to retiring (including 2023). He selected the 10 years which allowed him to maximise his relief claim.

    One of the years he wishes to claim for is 2013.

    Paul's taxable income for 2013
      Amount
    Rugby salary €250,000
    Employment expenses (€7,000)
    Net schedule E income €243,000
    Personal appearance income €15,000
    Taxable income €258,000

    After claiming Sportsperson's Relief for 2013, his taxable income has changed.

    Paul's taxable income for 2013, after Sportspersons Relief
      Amount
    Rugby salary €250,000
    Employment expenses (€7,000)
    Sportsperson's Relief (€250,000 x 40%) (€100,000)
    Net schedule E income €143,000
    Personal appearance income €15,000
    Taxable income €158,000

    Paul will receive a deduction of €100,000 for 2013. Paul will carry out a similar review for the other nine years he selects to calculate his total relief. The relief will be given by way of repayment.

Next: Interaction with pension products

Published: 04 April 2024 Print this page

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